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Colgate-Palmolive (CL)
NYSE:CL
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Colgate-Palmolive (CL) AI Stock Analysis

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CL

Colgate-Palmolive

(NYSE:CL)

Rating:63Neutral
Price Target:
$89.00
â–²(5.46% Upside)
Colgate-Palmolive's overall stock score reflects strong financial performance and promising strategic initiatives. However, technical indicators suggest short-term bearish trends, and high leverage poses financial risks. The company's valuation appears slightly high, but its dividend yield provides some investor support.
Positive Factors
Pet Business
Colgate has a fairly unique and underappreciated high growth pet business that gets too little attention.
Product Relaunch
CL is benefiting from the relaunch of Colgate Total, which has rolled out across 75 markets including LatAm, Asia, and Europe.
Profit Growth
Hill's posted exceptional 20% profit growth both YTD, as well as in 2024, even while increasing $ ad spend.
Negative Factors
North America Segment
There is a bearish view on the struggling North America segment.
Regional Performance
Mixed regional organic sales growth results were observed, with Latin America and Europe performing below consensus expectations.
Sales Guidance
Management tamped down sales guidance to the lower end of the 2-4% range.

Colgate-Palmolive (CL) vs. SPDR S&P 500 ETF (SPY)

Colgate-Palmolive Business Overview & Revenue Model

Company DescriptionColgate-Palmolive Company is a global leader in the consumer goods sector, specializing in the production and marketing of personal care, household, and oral care products. Founded in 1806, the company operates in two main segments: Oral, Personal and Home Care, and Pet Nutrition. Core products include well-known brands such as Colgate toothpaste, Palmolive dish soap, Speed Stick deodorants, and Hill's Science Diet pet food. With a strong presence in over 200 countries, Colgate-Palmolive is committed to sustainability and improving the health and hygiene of consumers worldwide.
How the Company Makes MoneyColgate-Palmolive generates revenue primarily through the sale of its wide range of consumer products. The company's revenue model is based on direct sales of products through various channels including retail, e-commerce, and wholesale distribution. Key revenue streams include oral care products (like toothpaste and mouthwash), personal care items (such as soaps and deodorants), and pet nutrition products. The company benefits from strong brand loyalty and recognition, which drives repeat purchases. Additionally, Colgate-Palmolive invests in marketing and product innovation, allowing it to maintain competitive advantages in the marketplace. Significant partnerships with retailers and e-commerce platforms further enhance its distribution capabilities, contributing to overall earnings.

Colgate-Palmolive Key Performance Indicators (KPIs)

Any
Any
Oral, Personal, and Home Care Revenue Breakdown
Oral, Personal, and Home Care Revenue Breakdown
Details revenue from core product categories, indicating consumer demand trends and the company's market position in each segment.
Chart InsightsColgate-Palmolive's revenue in North America and Latin America shows resilience, with recent growth despite consumer caution and market softness. The earnings call highlights strategic focus on innovation and acquisitions, like Prime100, to drive growth. However, challenges persist in Europe and Asia, with consumer price resistance and operational issues in China. The company's productivity initiatives aim to offset cost pressures and maintain profitability, suggesting a strategic pivot towards efficiency and innovation to navigate the current economic landscape.
Data provided by:Main Street Data

Colgate-Palmolive Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Colgate-Palmolive's ability to grow organic sales and make strategic acquisitions, such as Prime100, while also dealing with ongoing challenges in raw material costs, tariffs, and market softness in key regions. The company's commitment to innovation and reductions in tariff exposure partly offset these challenges.
Q2-2025 Updates
Positive Updates
Organic Sales Growth
Organic sales growth accelerated by 60 basis points to 2.4% in the second quarter, driven by improvements in North America and Africa/Eurasia.
Acquisition of Prime100
Colgate-Palmolive closed the acquisition of Prime100, the #1 vet-recommended fresh pet food brand in Australia.
Hill's Pet Nutrition Performance
Hill's delivered mid-single-digit organic growth across almost every hub, including the U.S. and Europe, in a flat category environment.
Commitment to Innovation
Colgate-Palmolive continues to invest in innovation, launching products like Colgate Miracle Repair serum and EltaMD UV skin recovery.
Reduction in Tariff Impact
Tariff exposure was reduced from the previous expectation of $200 million to $75 million.
Negative Updates
Raw Material and Tariff Challenges
Significant raw material pressure and tariffs continue to impact margins, with specific mention of higher costs in palm oil and fats.
North America Market Challenges
Persistent cautious consumer behavior in North America, with category slowdowns noted.
Softness in Emerging Markets
Volume and pricing in emerging markets like India and Brazil showing signs of weakness, with necessary adjustments in price pack architecture.
Private Label Impact on Hill's
Greater impact from private label on Hill's Pet Nutrition segment, impacting overall performance.
Company Guidance
During the Colgate-Palmolive 2025 Second Quarter Conference Call, the company provided an overview of its guidance, emphasizing its resilience in a challenging environment. Despite pressures from raw material costs and foreign exchange, Colgate-Palmolive achieved a 2.4% organic sales growth, driven by improvements in North America and Africa/Eurasia. The company also highlighted its strategic focus on innovation, with significant product launches and the acquisition of Prime100. Looking ahead, they are prepared to navigate volatility with a productivity initiative aimed at driving growth and efficiency, projecting $200-$300 million in savings over three years. They expect organic sales to improve slightly in the second half of the year, with a focus on price pack architecture and revenue growth management to offset continued cost pressures. The company reaffirmed its commitment to long-term growth, leveraging AI and analytics to optimize performance, while maintaining a low single-digit EPS growth expectation for 2025.

Colgate-Palmolive Financial Statement Overview

Summary
Colgate-Palmolive exhibits strong profitability and cash flow performance, reflecting efficient operations and good cash conversion metrics. However, the high debt levels relative to equity raise concerns about financial leverage and potential risks, particularly with recent revenue contraction. The company should focus on improving its equity base and managing leverage to sustain long-term financial health.
Income Statement
85
Very Positive
Colgate-Palmolive shows strong profitability with a consistent gross profit margin around 60.6% for TTM and a net profit margin of 14.5%. The company has experienced stable revenue growth, with the latest TTM period showing a slight decline. EBIT and EBITDA margins remain robust at 21.4% and 23.3% respectively, indicating efficient cost management. The company maintains solid profitability metrics, though recent revenue contraction calls for attention.
Balance Sheet
70
Positive
The balance sheet reflects a high debt-to-equity ratio of 10.17, which poses a risk due to potential leverage challenges. However, the company maintains a strong return on equity (ROE) of 414.8% for the latest period due to a relatively low equity base. The equity ratio stands at 4.02%, indicating low stockholder equity relative to total assets. Overall, while profitable, the high leverage might expose the company to financial risk.
Cash Flow
88
Very Positive
Colgate-Palmolive demonstrates robust cash flow management. The free cash flow growth rate is healthy at 10.9% for TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.35, and the free cash flow to net income ratio is 1.16, suggesting efficient conversion of profits into cash. This strong cash flow performance supports the company's financial stability despite high leverage.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.00B20.10B19.46B17.97B17.42B16.47B
Gross Profit12.11B12.11B11.25B10.15B10.29B9.93B
EBITDA4.80B4.85B4.25B3.37B3.76B4.35B
Net Income2.91B2.89B2.30B1.78B2.17B2.69B
Balance Sheet
Total Assets17.47B16.05B16.39B15.73B15.04B15.92B
Cash, Cash Equivalents and Short-Term Investments1.22B1.10B966.00M775.00M832.00M888.00M
Total Debt8.76B8.51B9.06B9.27B7.83B8.21B
Total Liabilities16.42B15.50B15.44B14.93B14.07B14.82B
Stockholders Equity702.00M212.00M609.00M401.00M609.00M743.00M
Cash Flow
Free Cash Flow3.37B3.55B3.04B1.86B2.76B3.31B
Operating Cash Flow3.92B4.11B3.75B2.56B3.33B3.72B
Investing Cash Flow-790.00M-534.00M-742.00M-1.60B-592.00M-878.00M
Financing Cash Flow-3.05B-3.39B-2.79B-952.00M-2.77B-2.82B

Colgate-Palmolive Technical Analysis

Technical Analysis Sentiment
Negative
Last Price84.39
Price Trends
50DMA
86.83
Negative
100DMA
88.86
Negative
200DMA
89.32
Negative
Market Momentum
MACD
-0.67
Negative
RSI
44.71
Neutral
STOCH
15.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CL, the sentiment is Negative. The current price of 84.39 is below the 20-day moving average (MA) of 84.77, below the 50-day MA of 86.83, and below the 200-day MA of 89.32, indicating a bearish trend. The MACD of -0.67 indicates Negative momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 15.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CL.

Colgate-Palmolive Risk Analysis

Colgate-Palmolive disclosed 19 risk factors in its most recent earnings report. Colgate-Palmolive reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Colgate-Palmolive Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$367.85B24.2831.23%2.61%0.29%7.85%
73
Outperform
$154.39B25.8028.36%3.12%-0.30%-14.60%
70
Outperform
$22.69B43.9412.07%1.25%1.13%-34.78%
63
Neutral
$67.95B23.63705.21%2.42%0.05%3.55%
63
Neutral
$20.41B14.67-2.93%3.10%2.04%-6.12%
62
Neutral
$14.46B18.41249.61%4.08%0.16%191.17%
60
Neutral
$42.85B17.80196.26%3.85%-6.89%7.52%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CL
Colgate-Palmolive
84.39
-21.99
-20.67%
CHD
Church & Dwight
93.25
-11.73
-11.17%
CLX
Clorox
119.98
-38.69
-24.38%
KMB
Kimberly Clark
128.84
-14.35
-10.02%
PG
Procter & Gamble
157.99
-13.57
-7.91%
UL
Unilever
63.54
0.55
0.87%

Colgate-Palmolive Corporate Events

Business Operations and Strategy
Colgate-Palmolive Launches New Productivity Program
Neutral
Aug 1, 2025

On July 31, 2025, Colgate-Palmolive‘s Board of Directors approved a new three-year productivity program aimed at supporting its 2030 strategy. This program focuses on optimizing the company’s global supply chain, streamlining organizational structures, and reducing overhead costs, with projected pre-tax charges between $200 and $300 million over three years. The program is expected to enhance the company’s operational efficiency and strategic alignment, with most charges incurred by the end of 2028, potentially impacting stakeholders and market positioning.

The most recent analyst rating on (CL) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Colgate-Palmolive Appoints Shane Grant as COO
Positive
May 29, 2025

On May 29, 2025, Colgate-Palmolive announced the appointment of Shane Grant as Chief Operating Officer for the Americas, effective June 16, 2025. Grant, who previously held leadership roles at Danone and The Coca-Cola Company, will receive a comprehensive compensation package including a base salary, bonuses, and equity awards. The company also announced the retirement of Prabha Parameswaran and subsequent leadership changes, positioning itself for strategic growth and development.

The most recent analyst rating on (CL) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Colgate-Palmolive Holds Annual Stockholders Meeting
Neutral
May 14, 2025

On May 9, 2025, Colgate-Palmolive held its Annual Meeting of Stockholders where several key decisions were made. The election of ten directors was confirmed, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for 2025. A non-binding advisory vote on executive compensation was approved, while stockholder proposals for an independent Board Chairman and revisiting plastic packaging policies were not approved.

The most recent analyst rating on (CL) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 03, 2025